US30: Testing key supply zone, possible pullback ahead
SPREADEX:DJI – Price Reaction at Supply Zone | Possible Short-Term Correction
Timeframe: 30-Minute Chart
Analysis Style: Price Action • Supply & Demand • Market Structure
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🧭 Market Context
After a strong rally from the lower demand zone, the Wall Street Index is now approaching a key supply area that previously triggered a sharp downward move.
At this level, sellers are beginning to step in again, and price momentum is starting to fade — suggesting a potential short-term correction ahead.
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🧩 Market Structure & Key Zones
🔴 Supply Zone #1: 46,227 – 46,370
→ The first reaction zone, where previous selling pressure started a strong decline.
🔴 Supply Zone #2 (Major Resistance): 46,572 – 46,700
→ A higher zone where strong bearish momentum originated before.
🟢 Demand Zone: 45,900 – 45,700
→ A previous accumulation area that fueled the recent bullish leg — possible support zone if price pulls back.
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📊 Current Price Behavior
Price has reached the 46,227 – 46,370 area and is showing signs of buyer exhaustion.
Multiple rejections and slower bullish candles near this level indicate a loss of momentum.
If the short-term bullish structure breaks, the market may shift toward a corrective phase.
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📉 Trading Scenario
✅ Primary Scenario (Bearish Reaction Expected):
1. Price might retest 46,229–46,400 once more.
2. Failure to break above this level could lead to a downward “push.”
3. Target zone for the correction: 45,800 – 45,900.
⚙️ Alternative Scenario:
• If price closes clearly above 46,400, the short-term bearish setup becomes invalid.
• In that case, the next resistance to watch lies around 46,600 – 46,700.
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💡 Conclusion
The Wall Street Index is currently testing a critical supply zone with visible signs of slowing momentum.
Unless bulls regain control above 46,400, the market may experience a short-term pullback toward the lower demand area.
This analysis is for educational and informational purposes only — not financial advice. Always confirm with your own price action and risk management strategy before making any trading decisions.
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Harry Andrew @ ZuperView
